The Vauban ModelThroughout the remainder of the year, banks’ capital needs will accelerate as credit losses are expected to continue, despite easing monetary policies and government intervention. To weather the turbulence in an economy that shows no immediate signs of improving, bank management must simultaneously master the: • Offensive skills to raise capital and seize growth opportunities • Defensive skills to protect asset quality and fortify their balance sheets These requisite skills call to mind the exploits of Le Marechal de Vauban, the pre-eminent soldier and military engineer of 17th-century France. His genius for the offensive (capturing places) and the defensive (fortifying places) earned him a reputation as one of the great captains of his age. This white paper will provide insight into protecting your bank’s financial health and positioning it for growth, along with some offensive and defensive strategies for raising capital. The economic recovery is inevitable, so prepare to emerge from it with a roar instead of a whimper.

Cracks in the DikeMany mid-sized banks with little or no sub-prime exposure and well-managed “capital cushions” were fortunate enough to avoid the burns of the sub-prime mortgage meltdown. However, many stood by nervously as the larger banks took the majority of the write-down body blows. While bankers and business leaders everywhere hope that the worst has passed, the aftershocks have left many with the premonition that the crisis is not quite over and there is still another shoe to drop. Already, the effects are starting to encroach on the broader economy as a number of small and mid-cap banks – having tried to grow too fast in the salad days of easy credit – have begun to see erosion in asset quality. Cracks are starting to appear in their “bread and butter” asset classes – from CRE and C&I to Home Equities and Credit Card loan portfolios. This spillover scenario is the new 800-pound gorilla in the conference room that is keeping CEOs and CFOs up at night.

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Many are asking whether their financial institutions have “the borrow” to raise adequate capital to hedge against any deterioration in asset quality and still: • Insulate against losses • Maintain liquidity • Protect the balance sheet • Return value to shareholders • Pursue growth opportunities While there has been no rash of bank failures, the current landscape for sourcing new capital still appears fairly barren. However, there are signs that the climate could be changing for the better as recent activity in the financial markets indicates. In its July 21, 2008 issue, Barron’s reported that “After a record-setting rally last Wednesday, the brutal sell-off in financial stocks – the worst for any major industry group since the technology bubble burst in 2000 – could be over”2 and that it’s time to consider buying. This may be a good omen for banks interested in raising common equity, but many traditional, large investors continue to exhibit a reluctance to pump money into the mid-sized banking segment in this sluggish economy. To compound matters, banks face: • Increased pressure from regulators to get more deeply involved in raising capital to what is considered to be “above well capitalized”; and • A paucity of available capital from sovereign wealth funds and private equity investors In addition, investors are causing waves in the market as they try to get their arms around potential credit losses at banks and predict...

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...COURSE 2 - The BalanceSheet
The balancesheet (also called statement of financial position) reports the financial position of the business at a point in time. It does so by listing the categories and amounts of assets, liabilities and equity on a specific date, in a format that proves the fundamental accounting equation.
ASSETS = EQUITY + LIABILITIES
or
ASSETS – LIABILITIES = EQUITY
Formats of presentation
Regardless of the format for the presentation of the balancesheet, comparative information should always be presented; depending on national or regional requirements, the current year is compared with the previous year or with the last two years. In Europe, assets are disclosed in their increasing liquidity order and liabilities in their decreasing maturity order, while in the USA the opposite rule functions.
The notes should include details concerning the specific accounting policies used for the line-items presented in the balancesheet and sub-classifications to provide details of the their movement.
This balancesheet format makes a distinction between current and non-current assets and liabilities. Basically, current assets consist of cash and other assets that the enterprise will use in the normal course of its operating cycle....

...PVR bluO Entertainment Limited
(PVR bluO)
Presently the Company operates two bowling alley centers at Ambience Mall-I, Gurgaon and Ambience Mall-II, at Vasant Kunj, New Delhi. The Company has made a roadmap for expansion of its business and will accordingly open additional bowling centers in India at Pune, Bangalore, Chandigarh, Ludhiana and Noida. These bowling centers on being operational are expected to enhance the income and profitability of the Company.
Industry Structure & Development
The Indian film industry was INR 93 Billion in 2011 indicating a growth of 11.5% vis-à-vis 2010. Quality content combined with the revival of Hindi films with mass connect improved the occupancy rates which
in-turn increased domestic box-office collections. With several high budget Hindi releases lined up across the year, 2012 it is expected to sustain the growth momentum witnessed in 2011. The Indian film industry is projected to grow at a CAGR of 10.1 % to touch INR 150 Billion in 2016. The industry expects domestic theatrical revenues to continue dominating the overall pie. Despite representing less than 15 % of the total screens in India, multiplex screens account for 50% of the Indian theatrical revenues.
The industry is expected to double the multiplex screens over the next five years taking the total tally
to over 2,200 screens in 2016. An increased number of shows on account of reduction in film duration
combined with growth in properties and quality of the film-going...

...January1, 2012 called the balancesheet. The report the reader will see below is a current balancesheet for a company called Custom Building that I personally work with. Working one on one with the owner has offered quite a bit of experience in the accounting world. The reader will be able to view the balancesheet below, following the explanation of the balancesheet for Custom Building discussed in full.
Custom Building Company BalanceSheet
January 1, 2012
Non-current Assets 2,150,000
Land/buildings 2,000,000
Furniture 12,000
Machinery 18,000
Investments 120,000
Current Assets 10,000
Bank/Cash 5800
Debtors-A/R 3200
Inventory 1000
Total Current Assets = 2,160.00
Equity &amp; Liabilities
Owner’s equity 1,700,000
Capital 1,700,000
Non current Liabilities 440,000
10% loan 440,000
Current Liabilities 20,000
Creditors/payables 20,000
Total Equity &amp; Liabilities 2,160.00
A business owner can understand this balance by first reviewing the balancesheet in it’s entirety. This is a snap shot of a company I work with called Custom Building. The last day of the reporting period was December 31, 2011. The inventory is the goods and stock of the company. Assets and liabilities are...

...﻿A balancesheet, like a photo, provides a financial picture of a company on a given day and time. It categorizes all of a company’s resources as assets, all of its debts as liabilities, and all of the owner’s investments as equity. A company uses its assets, such as accounts receivable, inventory, and equipment, for manufacturing or purchasing products for sale or to provide a service. A company’s assets are financed by its liabilities (debt) and the owner’s equity (net worth).
On a balancesheet, the following equation always applies:
Assets = Liabilities + Owner's Equity
Assets are shown on the balancesheet according to the ease with which an asset can be converted to cash, referred to as an asset's liquidity.
Similar to assets, liabilities are displayed according to their current and noncurrent status. Current liabilities represent debt that can be settled by the next operating cycle, which is usually considered one year (Finkler, 1993).
The Assets Side
The simplest way to classify assets is to make a distinction between assets that are short-lived and will convert into cash in less than a year, the current assets, and those that are expected to have a relatively long life, the fixed assets.
Companies use current assets to pay expenses and fund operations. These short-term assets include cash, marketable securities, account receivables, inventory, and any other assets that can...

...transaction and the corresponding counter entry in the ledger. The transactions are classified as either Debit or Credit and the default presentation is that the Credit is listed on the Right hand side, the Debit is listed on the left hand side and the account description is on the extreme left. By following the dual entry book keeping practice, this helps to ensure that the accounts balance out at the end of the accounting period.
The XYZ Ltd financial transactions for the month of January can be explained as detailed below followed by the journal entries in the T accounts below the explanation table. According to Atrill and McLaney (2011), the principle of debits and credit guide the basic the accounting equation in which assets are defined as the sum of liabilities and stockholder’s equity. To increase the assets, the debits have to be increased while debits are decreased simultaneously. For Liabilities, an increase requires the credits to be added while to reduce the liabilities, the debits are added to it.
Jan. 1st
The invested funds £300,000, and immovable assets consisting of land £100,000 and building £250,000 were an expense for the shareholders so they are captured as debit items and their total value is a credit item since it was used to acquire the common shares.
Jan. 2nd
The company acquired an asset which is computer equipment for £175,000 so there is an increase in equipment assets owned. However this asset was bought on...